externalities appear along the lifecycle. In a simple model, we show that it may be efficient to subsidize innovative firms in their … early stages or to protect mature firms from competition to appropriate these externalities. However, non …-benevolent politicians may not choose efficient policies. Real-world examples indicate that politicians tend to concentrate on externalities …

Fiscal externalities arise if subsidies to higher education raise future net fiscal revenues. We investigate in which … countries fiscal externalities provide a justification for increasing subsidies to higher education. First, we show that the … marginal fiscal recovery rate, i.e. the ratio of the change in total net fiscal revenues and the change in total subsidy costs …

and social welfare. We use an analytical model to assess the conditions under which such subsidies increase efficiency of … first-best outcomes when there are resources with heterogeneous emission intensities, there exists a range of subsidy rates … that are welfare-enhancing when greenhouse gas externalities are taken into account. We also derive the conditions under …

. Within each two-person household, externalities from the partnerś commodity consumption and unpriced actions are allowed …